FXstreet.com (San Francisco) - After testing June 29 low at 79.10, the USD/JPY is trading higher for the first session after three negative days. The Dollar has advanced 65 pips from today's low to test intra-day high at 79.75. Currently the pair is pricing at 79.70, 0.33% above opening price.
The pair looks "Slightly Bullish" and "Extremely Oversold" according to the FXstreet.com technical studies in its 15 minutes time frame. In the near time, "near-term upside may be
limited. But over the medium term we still see value in this trade," comments the RBS analyst team. "Particularly as we expect Japan to maintain a persistent structural trade deficit."
But taken that "domestic data continues to disappoint, with very weak machine orders and a lower current account surplus for May," continues RBS. "The worsening trade balance weighed on the current account and keeps us negative on JPY in the medium-term."
"While we expect the BoJ to leave policy on hold in July," adds RBS. "The MoF/BoJ is likely to be wary of sustained JPY strength."
The pair looks "Slightly Bullish" and "Extremely Oversold" according to the FXstreet.com technical studies in its 15 minutes time frame. In the near time, "near-term upside may be
limited. But over the medium term we still see value in this trade," comments the RBS analyst team. "Particularly as we expect Japan to maintain a persistent structural trade deficit."
But taken that "domestic data continues to disappoint, with very weak machine orders and a lower current account surplus for May," continues RBS. "The worsening trade balance weighed on the current account and keeps us negative on JPY in the medium-term."
"While we expect the BoJ to leave policy on hold in July," adds RBS. "The MoF/BoJ is likely to be wary of sustained JPY strength."
